Virginia is known for its strong economy, business-friendly tax policies, and highly skilled workforce. Plus, its strategic location on the East Coast provides easy access to major U.S. and international markets. However, navigating Virginia’s employment, tax, and labor laws can be complex. That’s why partnering with an Employer of Record (EOR) might be the smart move to ensure compliance and streamline hiring.

In this guide, we explain how Virginia EOR services work and identify the top 5 EOR companies in Virginia.

What is an Virginia Employer of Record?

An Employer of Record can play an important role in business operations and expanding into Virginia. This type of service provider helps organizations that don’t have registered entities in the state or even in the US to legally hire employees there. How does it work? If you don’t own an entity, the EOR provider will use its entity in Virginia to employ your workers, directly entering into contracts with them.

This makes the EOR the workers’ full legal employer in Virginia while you become the worksite employer, each with your different roles to play. While you manage their daily schedules and tasks, the EOR manages their HR needs including admin, payroll, benefits, paid time off (PTO), and more. The EOR also becomes responsible for maintaining compliance with all local, state, and federal tax and employment laws. For this reason, most EORs employ HR, Tax, and legal experts to advise them and help keep their hiring compliant.

Rivaling most countries, the State of Virginia is home to a large population of 8.749 million people and boasts a Gross State Product (GSPP) of $601.2 billion. The state’s labor force amounted to 4.473 million employees in 2024, and its unemployment was only 2.8% which represents a fairly tight labor market. The biggest employers in Virginia include manufacturing professionals, scientific and technical services; real estate, rentals, leasing; and manufacturing.

The state’s economy is highly diverse, with agriculture, defense, aerospace, IT, biotech, financial services, and banking all making important contributions. It is also a top state for business and infrastructure while also leading the country in education. While employers pay 6% CIT and an average 5.7% sales tax in the state, numerous programs exist to provide financial assistance, infrastructure assistance, recruitment and training, and tax incentives to qualifying businesses. This adds up to a welcoming business environment and one that many organizations use EOR services to help them enter.

Start hiring with a Virginia EOR

Let us handle the complexities of hiring, compliance, and payroll in Virginia while you focus on growing your team.

  • Hire employees in Virginia with a Virginia EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Virginia
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What is the Difference Between a Virginia EOR and a Virginia PEO?

If you want to outsource your HR functions to a service provider in Virginia, you can choose to do so through an EOR or a Professional Employment Organization (PEO). Like an EOR, a PEO will also manage administration, payroll, and benefits for your Virginian workers. It will help to maintain compliance with local tax and labor laws to keep your hiring legal and transparent. PEOs and EORs also pay withholding taxes and unemployment contributions on their clients’ behalf.

While a Virginia EOR will hire your employees directly, however, a PEO won’t. An EOR works as a full legal employer, while a PEO collaborates with you in a co-employment arrangement. While it may take on some responsibilities, you need to have your own entity through which you hire your workers directly.

PEOs are also highly regulated in Virginia. They must be registered with the Virginia Workers’ Compensation Commission, and this registration must be updated annually. They must also notify the commission within 30 days when they have new clients or terminate client relationships.

In contrast, an EOR isn’t subject to these restrictions. The EOR is treated the same way as other direct employers in Virginia and is simply monitored for its compliance with tax and employment laws. This can make hiring through an EOR a lot easier than through a PEO. Of course, clients that are located abroad need to use EORs to hire Virginian workers, while only US-registered companies can work with PEOs.

How Does a Virginia Employer of Record Work?

When you want to enter the market in Virginia and work with locals, you’ll need to either source them yourself or work with a professional recruiter. You can choose to collaborate with a recruitment agency, but selecting an EOR that also provides recruitment can be even more efficient and cost-effective. Once you’ve sourced your employees, this is how you can work with an EOR to hire and take care of them:

1

Select an EOR Service Provider

Choose an EOR that fits your budget and provides the full complement of services you require. Give it the names of your candidates to start the hiring process.

2

Negotiate Contracts

With the EOR as your representative, negotiate terms with your candidates. You’ll need to settle on working conditions, benefits, and salaries, and these packages may need to be especially attractive in Virginia because of the tight labor market. When the terms are agreed upon, the EOR will draw them up into legally compliant contracts.

3

Hire Staff

The EOR sends these contracts to your candidates to sign. The EOR signs as the other party to the contracts and becomes the full legal employer of your Virginian workers.

4

Onboard

Your EOR partner will need to collect your employees’ documents and personal information. It will onboard them by adding them to the payroll, arranging their salary payments, and registering them with the relevant labor and tax authorities. You also need to onboard them to your company. This will normally include orientations, training, giving them access to your systems and documents, and introducing them to their colleagues.

5

Manage Payrolls, Taxes and Benefits

You’ll be responsible for monitoring the time and attendance of your workers and sharing this data with the EOR. It will do everything else, from calculating their salaries to withholding their taxes and deductions. The EOR will remit taxes to the state and federal authorities and make contributions to all mandatory benefits programs for you. It will also keep track of your employees’ leave entitlements.

6

Maintain Compliance

As their full legal employer, the EOR is responsible for ensuring that all local, state, and federal tax and employment laws are strictly followed. It reports to the IRS, the Virginia Department of Taxation, and the Social Security Administration. 

7

Terminate Workers

If you need to terminate workers or if they leave on their own, the EOR has to handle the necessary admin. If you’ve agreed to provide notice and severance to your workers, the EOR will assess what’s required.

Best 5 Employers of Record in Virginia

It’s not always easy to select a service provider and that’s why we’ve put together a list of the top five EORs to use for hiring in Virginia. While these aren’t your only choices, we think they’re the ones you’ll get the most value from.

1

Remote People

Remote People is a global Employer of Record provider that supports international hiring through a service-led approach rather than a purely software-driven platform. It is designed for companies that want guidance and execution support when navigating local employment rules, rather than managing everything through self-service tools.

Remote People homepage new

Core Features

  • Remote People acts as the legal employer for full-time international hires and provides locally compliant employment contracts based on country regulations.
  • Payroll processing, statutory contributions, and mandatory benefits are handled under the EOR arrangement.
  • Offers recruitment support and guidance on immigration and work permits in select locations, which can be useful when hiring across borders for the first time.

Pricing Model

Remote charges $199 per full-time employee per month.

Pros and Cons

  • Pros

Strong advisory support for companies unfamiliar with local employment rules

Useful for companies that prefer guided execution over self-managed platforms

Ability to combine recruitment services with EOR under one provider

  • Cons

May feel slower for teams that prioritize speed over deliberation

Less optimized for companies that want to decentralize hiring decisions entirely

Verdict

Remote People stands out by supporting better hiring decisions, not just compliant execution. This makes it particularly valuable for companies expanding thoughtfully into new regions, where understanding tradeoffs matters as much as moving quickly.

2

Remote

Remote provides an Employer of Record (EOR) service that simplifies employee hiring for businesses.

Remote homepage new

Core Features

  • AI-powered candidate matching and other recruitment tools
  • Administration of mandatory and optional benefits
  • Built-in time and attendance tools 
  • Contractor management and global payroll services

Pricing Model

The EOR service for full-time employees is priced at $599 per month.

Pros and Cons

  • Pros

While Remote doesn’t employ recruiters like Remote People, it does include new advanced tools that help employers connect with candidates on their own.

Its platform is an extensive HRIS that includes time and attendance, talent management, and other useful features.

  • Cons

Remote provides health insurance and retirement plan benefits which are mandatory in the state of Virginia.

Verdict

If you need only some help sourcing your employees and want to offer them extensive benefits packages, Remote is a good choice for an EOR partner.

3

Deel

Deel is an EOR platform designed for managing employees, contractors, and compliance in over 150 countries.

Deel Homepage new

Core Features

  • Mobile app to help employees access the platform 
  • EOR services in 150 countries and global payroll solutions for more than 100 
  • Time-tracking and clocking in/out features for employees

Pricing Model

The EOR plan costs $599 per full-time employee per month.

Pros and Cons

  • Pros

Deel is known for great service which is available 24/7 and also includes advice from legal and HR experts. 

It also provides clients with a great range of payment options for their convenience.

  • Cons

Deel doesn’t employ recruiters, and its platform doesn’t include any features to help clients perform their own recruiting activities.

It also doesn’t provide additional benefits so clients will need to connect with other providers to offer them.

Verdict

 If you already have providers for additional benefits, Deel can be a good partner to choose, especially for small and new companies with limited HR experience in Virginia.

4

Papaya Global

Papaya Global is an EOR company that helps businesses manage employment in Virginia.

Papaya Global homepage

Core Features

  • Payroll in more than 130 currencies and EOR services in over 160 countries and all 50 states
  • Contractor management for very low fees
  • Administration of health and retirement benefits

Pricing Model

Starting at $599 per month for full-time employees.

Pros and Cons

  • Pros

Employees can clock in and out of work using Papaya Global’s mobile app, which shares time and attendance data directly with payroll. 

Offers additional benefits packages for clients, including health insurance, retirement savings, and equity plans.

  • Cons

It doesn’t offer any active recruiting or tools to help clients perform this function.

Verdict

If you want to provide your Virginia employees with all the benefits they deserve and then some at an affordable rate, Papaya Global might be your best choice.

5

Globalization Partners

Founded in 2012, Globalization Partners (G-P) provides Employer of Record (EOR) services to help businesses expand internationally.

Globalization-Partners-homepage.webp

Core Features

  • EOR services offered in over 180 countries
  • Administers additional benefits for clients
  • Add-on packages give AI-powered advice or consulting services from expert advisors 
  • Mobile app for employees and time-tracking features

Pricing Model

G-P offers tailored pricing packages, such as Meridian Core, Prime, and Recruit, based on a company’s needs. Pricing details are not available online, and businesses must contact G-P for a quote.

Pros and Cons

  • Pros

G-P If you need more help with legal and HR issues, you can get this through extra packages with either AI or human expert consultation. 

Gives clients a wide range of benefits to choose from for their employees, including health insurance, equity packages, and retirement savings plans.

  • Cons

A lack of public pricing and no recruitment services.

Verdict

If you want a provider that can offer tailored packages for hiring and consultations, G-P may be the right choice for your EOR partner.

What Labor Laws Apply to Hiring in Virginia?

Unlike in most countries that are largely covered by federal laws, each state in the US has its own labor and tax laws that need to be followed by all employers. Virginia collects between 2.00% and 5.75% of employees’ wages for personal income tax, which must be withheld by the employer in addition to federal income tax. Employers are also required to hold worker’s compensation insurance though the EOR will hold the policy and generally roll the cost into its service fee. 

As an at-will employment state, employers are not required to provide notice or severance to employees upon termination unless these have been agreed on in their contracts. Parental leave is not mandated in Virginia. However, the state interprets pregnancy as a temporary disability, so employers who provide disability benefits should provide the same to expecting mothers.

Drug testing is legal in the state and can be used as grounds for terminating employees. Employers must pay employees at least 150% of their normal wages when they work overtime. Meals and breaks are not mandated in Virginia and are offered at the discretion of the employer. Finally, the minimum wage in the state is $12.41/hour as of 1 January 2025.

What Are the Benefits of a Virginia EOR?

Partnering with an EOR in Virginia can produce lots of benefits for your organization, including:

  • Streamlined access to government or defense-related sectors
  • Reduced liability and simplified employee onboarding
  • Help sourcing talent from some providers
  • Efficient HR support provided for employees
  • Access to the Virginia market for international employers

What are the Downsides of a Virginia EOR

As with any business decision, there are not only benefits but also some downsides to consider when working with a Virginia EOR, including:

  • Possible employer-employee misalignment with company culture at a distance
  • Reliance on the EOR to respond quickly to legal changes
  • Reduced control over employees and proximity to their concerns
  • Poor service from the EOR may create employee discontent or turnover.

How to Choose a Virginia Employer of Record

Choosing the right EOR from the hundreds of providers offering services in Virginia can be a real challenge. Whatever strategy you use to distinguish providers, you should still create a short list of possibilities to investigate further before making a final decision based on the following criteria:

Fees

EOR fees in Virginia can vary widely. Some providers offer cut-rate prices while giving their clients bare-bones service. Others provide boutique, white-glove services that your organization may not need or be able to afford. It’s, therefore, crucial to set your budget in advance and then look for a provider that fits into it while still providing all the services you need. When you’re investigating your shortlisted providers, be sure to ask them for specific quotes to be sure you clearly understand the breakdown of their fees.

Compliance

Look for EOR providers that have been in the industry for a while and have established themselves as compliant employers. New companies might offer new technologies that include AI and user-friendly platforms. However, they may not have the experience to adequately ensure compliance with the wide range of Virginia state laws and federal laws that they’ll need to follow to keep their workers happily and equitably employed.

Industry Experience

It can also be very effective to work with an EOR that has specific experience in your industry, be it technology, government contracting, or anything else. These providers will be more adept at recruiting talent for your positions and will have intimate knowledge of the compensation packages that you’ll need to offer to be a competitive employer.

Reputation

Look online for ratings and reviews of the providers you’re considering partnering with to find public information about their performance. Keeping in mind that people are more likely to post criticisms than compliments, you can find out specifics on how well the providers have done in the past in the US and in Virginia specifically. This can help you avoid problems that other clients or employees have encountered.

Services

If you want to provide your employees with additional benefits, you’ll need an EOR that offers the packages you’re looking for. Likewise, if you want recruitment services to help you connect with Virginian workers, only some EORs can help you. List the services you want to take advantage of and choose a provider that can handle all of your needs.

Engage a Virginia Employer of Record

Hiring employees in Virginia no longer has to feel out of reach. With an Employer of Record, you can legally and compliantly employ workers in Virginia without setting up a US entity. An EOR manages payroll, tax obligations, and employment compliance on your behalf, making market entry far more straightforward.

Remote People delivers fully managed Virginia EOR services designed to simplify hiring while keeping costs predictable and compliance airtight. By handling the employment details end to end, we help you build your Virginia workforce quickly and with confidence. Reach out today to learn how our EOR services can support your hiring plans in Virginia.